Is it safe to give pocket money for kids? A common debate arises in almost all families: whether, when, how and what to give for pocket money.
Giving pocket money to children is a preliminary point to develop important life skills: the money and its importance.
Pocket money needs to be handled properly from the very beginning.
It gives freedom to your kids to spend money on their own, builds a sense of responsibility, an awareness on what money can do to satisfy the needs, develops the skills of learning self control, wise decision power, money value and saving money; what to do and how much to be done to earn money [Teaching responsibility to your children].
On the other hand, allowing the children to earn pocket money may lead to a kind of thinking among children that they will be paid for every task they do to help. Thus, it makes a lack of proper understanding in the children about what the pocket money is for!
Remember that bad money habits are very easy to learn and very difficult to change. So, make your child learn good money habits early in their life for better basement in the life [Dealing with bad attitude].
Things to consider while offering pocket money
Offering pocket money for the kids depends on the amount that you can afford as well as on what the kid is going to spend for. If you are planning to start giving pocket money for the kids, try to work out the following:
- Is your child ready to learn the responsibility of money?
- How much amount of money is reasonable for pocket money?
- On what basis do you prefer giving pocket money—daily, weekly or monthly?
- How do you give the pocket money for all children – equally or unequally?
- How do you prefer giving pocket money—through allowances or chores?
- How much to be done to earn the pocket money?
- How much are you going to pay for each task?
- How do you keep track of your kids spending pocket money?
- How much control do you have over the misuse of the pocket money?
Teach your kids about pocket money
At the same time, make your kids learn lessons when they have money. Explain them about some situations from which they learn how to use pocket money.
Tell your kids that if they spend all money at once, then there will be no money until the next pay.
Make your kids aware not to borrow money from anyone so that they can avoid paying it back from their pocket money.
Do not stop giving pocket money to your kid as it can lead to stealing money from your pocket or from their friends. So, as a parent you have to look into these situations.
Some people say that it is a good idea to give regular pocket money to their kids because this will help them understand money in a better way. Some people cannot afford giving pocket money.
Remember that apart from giving pocket money to your kids to help them learn how to manage money, you should also give your guidance in managing that pocket money.